Ontario Premier: The U.S. will grant full or partial tariff exemptions on Canadian automobiles
Ontario Premier Doug Ford stated that the United States will grant tariff exemptions for Canadian cars that use more than 50% American parts in their production. Ford confirmed this policy during a call with U.S. Secretary of Commerce Gina Raimondo. If the American parts in Canadian-assembled cars are less than 50%, a tariff of 12.5% will apply
Doug Ford, the Premier of Ontario, Canada, stated on March 27 local time that U.S. Secretary of Commerce Gina Raimondo informed him that Canadian cars produced with a majority of U.S. parts would be exempt from tariffs.
Premier Doug Ford of Ontario mentioned that he had a roughly 25-minute phone call with U.S. Secretary of Commerce Gina Raimondo late on March 26.
Raimondo told him that vehicles entering the U.S. from Canada that contain more than 50% U.S.-made parts (including most of Canada's car exports) would be exempt from U.S. tariffs. Cars assembled in Canada with less than 50% U.S. parts would face a 12.5% tariff.
Ford also stated that he spoke with Canadian Prime Minister Justin Trudeau on the 27th. He said that in response to U.S. tariff measures, both agreed that Canada must retaliate, but they would wait until April 2, when the U.S. announces the full list of tariff items.
According to the Canadian Vehicle Manufacturers Association's statistics for 2023, Canada exported a total of CAD 51 billion in vehicles that year, with 93%, or CAD 47 billion, exported to the U.S. Additionally, statistics from Ontario show that in 2023, the province's exports to the U.S. accounted for 82% of the province's trade, approximately 77% of Canada's total exports to the U.S., while automotive exports to the U.S. accounted for nearly 30% of the province's total exports.
Trump announces a 25% tariff on imported cars; White House spokesperson: Tariffs exempt for auto parts that comply with the USMCA
On March 26, U.S. President Trump signed a proclamation at the White House announcing a 25% tariff on imported cars, with the measures set to take effect on April 2.
On the same day, White House spokesperson Harrison Fields stated that the 25% tariff would apply to imported passenger cars and light trucks, as well as key automotive parts (engines, transmissions, powertrain components, and electrical components), with the possibility of increasing tariffs on other parts if necessary.
Fields indicated that before the Secretary of Commerce consults with Customs and Border Protection, auto parts that comply with the "United States-Mexico-Canada Agreement" (USMCA) would continue to be exempt from tariffs.
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